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build cost 300, sale price 350. profit 50. real rent average 15kpa, rental guarantee 20kpa for 5 years. Developers profit is 50k, minus (5K times 5 yrs) 25k over five years, net profit 25k plus a bit of management fees along the way and the interest on the profit as it is drip fed back to the...

no risk? The risk is during the 5 years the property value decreases. at the end of the 5 years you cant find a tenant (at any price) and you cant sell for more than half what you paid. Now, how can you manage that risk? Think about how the developer has managed their risk? build for...